Knowing how to rebuild a company is a challenge in itself. That’s because there is no ready-made formula that fits all types of endeavors.

What do exist are some practical measures to overcome the crisis in the company. The first step you’ve already taken is to admit the problem.

Many entrepreneurs tend to ignore this fact, and end up only further damaging the situation.

However, it is only by admitting the problem that it is possible to look for ways to identify what caused it, the consequences, and, of course, how to resolve the issue.

But if you’re here, it’s because you’ve recognized that there are problems and that you need to do something to change the current scenario of your business. So, this first phase has already been completed.

Now, the next step for you to learn how to manage business crises is:

Start by identifying the causes of the problem

The process of how to get out of the business crisis must start with identifying the causes of the problem. This step is critical since you can tackle the root cause.

Usually, the crisis comes from sources of waste or lack of preparation. It is only with an in-depth analysis and identification that it will be possible to draw up an action plan for your venture.

It’s like your company got sick. To know what treatment should be done, first it is necessary to identify the disease that is commenting on your business.

Based on this detailed diagnosis, you will be able to better deal with the problem and, thus, evolve in discovering how to get out of the business crisis that your business is going through at the moment.

But how do we identify these causes?

If you work with spreadsheets, the ideal is to start by analyzing each one of them. In this way, it will be possible to identify, for example, high expenses that can be reduced.

But, beforehand, know that just keeping spreadsheets as a control tool is a problem.

This is because they are considered obsolete. As they are filled in manually, the chances of errors occurring are greater (and any wrong penny can hurt your business).

Furthermore, they require a very large amount of time, which ends up hindering other administrative tasks. Therefore, the ideal is that you provide a management software.

Through it, you will be able to centralize all your business operations, and still execute them in an optimized way and in half the time it would normally take if you performed this management process manually.

In this sense, the system for Lexos companies is an excellent alternative, since it has a series of control tools, such as reporting, which are very interesting for companies that are coming out of the crisis, or are in the process of starting to leave. .

In addition, through the reports generated by this program, it will be possible to analyze the causes of the problem in your company, making it possible for you to draw a more accurate diagnosis of what caused your business to go into crisis.

And several causes may have generated alertness in your business. However, some causes are considered more common. Among them are:

• High turnover but little profit (this occurs when the company sells a lot, but the profit margin is not enough)
• Not being able to meet financial commitments due to lack of resources
• Late payment to suppliers
• Drop in sales volume
• Targets not achieved
• Expenses greater than income
• Between others

By identifying the causes of the financial crisis in the company, it will be easier to assess the next steps that should be taken.

look for alternatives

Keep in mind that once you identify the causes of the problem, you are already overcoming the financial crisis in your business. Now, it’s all a matter of looking for alternatives.

Depending on the causes that have been identified, you can look for alternatives to end them and thus restore stability and tranquility to your business.

It is possible to make various types of decisions on how to get out of a business crisis. But there are some more common ones that can help companies from different segments, they are:

• Reduce unnecessary expenses
• Expand the portfolio of services and products to serve a larger audience
• Change the niche of performance
• Reduce the size of the enterprise
• Close the deal

As you can see above, there are several steps that can be taken in a business crisis. Some simpler, and others extremely drastic (such as closing the deal).

Although the options above are the main ones, there may be other alternatives for your business. And you will only be able to identify them through diagnosis.

That’s why it’s so important to have tools that help you identify the causes of the problem. With them, it will also be easier to look for alternatives to overcome this delicate moment and start growing again.

Planning, improving strategies and establishing actions

Once you’ve identified the best alternative on how to get out of the business crisis for your business, it’s time to chart a path towards that goal.

At this point, you should establish strategies and actions, as well as a plan. It’s also nice to have a plan B, after all, you never know when something might change and you need to have another way forward.

For your plan to overcome the financial crisis to be really effective, it is necessary that it has some important items. Are they:

• Put goals that are really possible, and that are in accordance with the market reality. In addition, it is necessary to establish the deadline for achieving these goals;
• Create indicators to monitor the progress of planning;
• Keep an eye on these indicators to gauge the need for any redirection;
• Establish marketing actions that help your business to reach your audience more effectively;
• Adapt the sales conditions of your products and services according to the market reality;
• Keep your plan and action always up to date, so that it will meet the demands of the market and customers.

The items above are essential for a realistic planning that can really help your company to re-establish itself in the market.

Execute an action plan

It doesn’t matter if you’re going to try to change niche, reduce the size of the company, expand the portfolio of products or even close the business. In all cases you need to plan.

But, as our objective here is to show you how to get out of the financial crisis, keeping your business, let’s take a more optimistic view. You’ve done all the information gathering and drawn up an action plan.

Keep even tighter control

After all the previous steps, you should have realized how having control over everything in the enterprise is possible. Therefore, it is essential that you invest in management software.

The Lexos management program can help you in this regard. With it, you’ll be able to follow the performance of your business from anywhere. And best of all, it will be possible to centralize everything in one place, optimizing the administration of the project.

Knowing how to get out of the business crisis is the first step towards overcoming it.

Now that you know the steps that must be taken to know how to get out of the business crisis, be sure to start your planning. By following the guidelines above, and maintaining good control of your business through a management system, it will be easier to overcome this difficult moment and start growing again.